User Account

All Pages

How many bushels of corns he can produce

Assignment Help Microeconomics
Reference no: EM13876959

A farmer uses land and labor to grow corn. He has the following increasing return to scale production function Q = 130 A0.6 L0.5 where Q is the amount of corns in bushels, A is land in acres and L is number of farm workers.

(a) If this farmer has 120 acres of land, how many farm workers must he employ in order to produce 20,000 bushels of corn? What is the marginal product of labor at this level of employment?

(b) Assume this farmer pays each farm worker $800 over the growing season and spends $3,000 for seed and fertilizer. If the price of corn in the spot market is $4.20 a bushel, what is the farmer's profit (assume no fixed cost)?

(c) Is this farmer paying his workers the value of their marginal product?

(d) If this farmer doubles the amount of land and labor, how many bushels of corns he can produce?

 

Reference no: EM13876959

Questions Cloud

Determine using z-transform techniques : Prove that the Fibonacci sequence can be though of as the impulse response of the system described by the difference equation:
Crime prevention programs or strategies : For this part of the final learning assessment you will prepare a 3-4 page paper in which you evaluate three different crime prevention programs or strategies
Prepare a flexible budget for the production and sale : Prepare a flexible budget for the production and sale of 900 units. Compute for June: The sales volume variance, in terms of operating income.
Discuss applicability of using standard costing for product : Discuss the applicability or nonapplicability of using standard costing for a product classified. What are some primary criticisms of using standard cost systems in today's manufacturing environment?
How many bushels of corns he can produce : Assume this farmer pays each farm worker $800 over the growing season and spends $3,000 for seed and fertilizer. If the price of corn in the spot market is $4.20 a bushel, what is the farmer's profit (assume no fixed cost)?
How innovation might benefit the organization : Describes how innovation might benefit the organization in terms of meeting its organizational objectives
Best side lobe attenuation expected under constraints : The requirements for the frequency resolution of the system specify that the largest allowable main lobe for the Kaiser window is p/100. What is the best side lobe attenuation expected under these constraints?
Why do you think the buddha focused on psychology : Why do you think the Buddha focused on psychology instead of philosophy? How do you think this focus affected the spread of Buddhism throughout India and the world
What level of labor input does it drop to zero : A firm has the following short run production function Q = 45L2.5 - 4L3- Write the equations for the marginal and average product of labor.

Reviews

Write a Review

Microeconomics Questions & Answers

  Ceate ad sras and lras curves for economy experiencing a

construct the ad sras and lras curves for an economy experiencing a full employment b an economic boom and c a

  Strategies and methods required to influence organizational

you are a manager of a large rehabilitation center that provides short-term care rehabilitation services on an

  Illustrate how the strategies relate to model of online

conduct research online of the various strategies used for marketing products and services in the online environment

  What is the significance of resource pricing

What is the significance of resource pricing. Explain how the factors determining resource demand differ from those determining product demand. Explain the meaning and significance of the fact that the demand for a resource is a derived demand.

  Write down the three functions of money and why are they

write down the three functions of money and why are they significant? write down the differences between m1 and m2? how

  What will the inflation rate be in the period of the cuts

You need both equations and clearly labeled graphs (separate graphs for each question) to answer the following questions. Assume that b=1/2 and that initially the real interest rate is equal to the marginal product of capital at 3%. As well, assume t..

  Profit maximization level

If a competitive firm is currently producing a level of output at which profit is not maximized, then it must be true that marginal revenue exceeds marginal cost.

  Draw en edgeworth box

Draw en Edgeworth box and illustrate. Initial endowement allocation, an indifferens curve for each consumer and the contract curve.

  Compute the equilibrium price

Using the following equations Qs = 13,000P and Qd = 48,000-6,000P. Plot supply and demand curves (require a graph). Determine the equilibrium price?

  Examples of government intervention-regulations and taxation

What effect do government intervention, taxation, and regulations have on economic behaviour? Describe. What are real-world examples of government intervention, regulations and taxation? What are the goals of each?

  Effect of events on market

What will be the effect of the following events on the market for French wine and the quantity consumed? Distinguish between the short-run and the long-run impact.

  A domestic shoe company distributes running shoes and

a domestic shoe company distributes running shoes and tennis shoes for 95 per pair. the marginal cost of producing a

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd